Poverty, Social and Gender Analysis

Transcription

1 Urban Water Supply Project (RRP CAM ) Poverty, Social and Gender Analysis (DRAFT FINAL REPORT) Updated October 2014

2 TABLE OF CONTENTS 1. Introduction ADB PSGA Policy and Guidelines 2 3. Project Background Basic Water Supply and Sanitation Facilities Sources of Livelihood Quality of Built Environment, Use of Appliances and Motorized Transport Education and Literacy Social Development Issues Poverty Related Issues Affordability of the Water Supply Service Gender Issues Institutional Gender Analysis Ethnic Minorities Conclusion 34 Bibliography

3 List of Tables: Table 1: Sources of Household Potable Water Table 2: Dry Season Water Sources, Means of Purification and Access to Water Sources Table 3: Gender of Household Members Collecting Water Table 4: Household Sanitation Facilities Table 5: Sources of Livelihood Table 6: Physical Quality of Life Indicators Table 7: Highest Educational Level of Household Members Table 8: Households by Per Capita, Per Day Income Level (PPP) Table 9: Poverty Data by Subproject Province Table 10: Average Household Income and Expenditure Table 11: Poor and Non-Poor Ranking Table 12: Householder s Explanations for Being Poor Table 13: Reasons for Not Wishing to Be Connected Table 14: Willingness to Pay Connection and Current Monthly Tariff (KHR) Table 15: Affordability to Pay Estimates (Amounts in KHR) Table 16: Willingness to Connect Table 17: Ranking of Priorities Table 18: Matrix of Gender Related Issues Table 19: Ministry and Public Waterworks Employment by Gender: September 2014 Table 20: Ethnic Minorities in Project Cities

4 ABBREVIATIONS ADB ATP DMF DWA FGD GAD GAP GOC EMP IPP KHR LARP M&E MDG MIH MPWT O&M PPA PPP PPWSA PSGA SES SPRSS SPS WB WSA WTP Asian Development Bank Ability to Pay Design Monitoring Framework Department of Women s Affairs Focus Group Discussion Gender and Development Gender Action Plan Government of Cambodia Environmental Management Plan Indigenous Peoples Plan Cambodian Riel (2013: US$1=KHR4125) Land Acquisition and Resettlement Plan Monitoring and Evaluation Millennium Development Goals Ministry of Industry and Handicraft Ministry of Public Works and Transport Operation and Maintenance Participatory Poverty Assessment Purchasing Power Parity Phnom Penh Water Supply Authority Poverty, Social and Gender Assessment Socioeconomic Survey Summary Poverty Reduction and Social Strategy Safeguard Policy Statement (ADB:2009) World Bank Water Supply Authority Willingness to Pay

5 EXECUTIVE SUMMARY 1. This Poverty, Social and Gender Analysis has been prepared by the PPTA Team to ensure that both MIME and ADB are able to understand how the Project will generate positive outcomes for the poor, women and other vulnerable groups notably the small number of different ethnic groups residing in most of the subproject towns. However, the analysis is not largely based on households that are currently served by existing WSA but rather households that are unserved because from a poverty, social and gender perspective it is those components of the overall Project that will enable these households to clearly benefit from the Project. The same argument applies to sanitation-related issues that are addressed in this PSGA but will not be financed by the Project with the exception of a public hygiene and sanitation program in Stung Treng (where over half of the Project s overall investment will be made). 2. The key to the successful implementation of this Project will be the commitment of MIME to supply household connections free-of-charge to 8,000 households currently not served in Siem Reap and 6,600 households in Stung Treng not currently served. This is definitively the pro-poor component of the Project because Stung Treng has the highest urban poverty rate with an average 2012 poverty rate of 21.3% followed by Siem Reap with a rate of 18.4%. Other quantitative indices including percentage of households living on US$1.25, US$2.00, US$2.50, US$4.00 and US$5.00 per capita, per day and average household income and expenditure levels based on the PPTA Socioeconomic Survey generally support this poverty bias as well although Siem Reap (a reflection of its pivotal role as the major tourist destination in Cambodia has high average incomes for it best-off households). The quantitative data is also corroborated by the qualitative data associated with ranking of poor and non-poor households and explanations for being poor. 3. The SES demonstrates that nearly all households interviewed ranked improved water supply as the number one priority but sanitation related improvements (better household toilet and bathing facilities) generally ranked lower than increased household income and enhanced food security with the exception of Kampong Cham (least poor of all nine cities included in the overall project). However, during FGD facilitated by the PPTA it was found that all priorities listed by the SES are priorities and simply ranking them is fine but there is no question that of course improved water supply and sanitation improvements are important priorities. 4. This is also indicated by a willingness to even pay for household connections and reasonable water consumption fees. Existing connections fees average approximately US$100 and if MIME for one reason or another decided it would not provide such connections free-of-charge even the very poorest households stated they could contribute towards household connection costs although they would prefer not to. It was suggested that be reducing connection fees to approximately US$50 would be more affordable than the existing fee. The PSGA demonstrates that the sustainability of MIME s investment will rest on whether or not local WSA are able to supply water in adequate quantities and of sufficiently high quality. Some households stated they would still continue to use existing sources of water because they are free-of-charge but it is argued in the PSGA that if the Project can deliver in terms of both quantity and quality these households are likely to change their mind. This was demonstrated during the FGDs where these householders participating on reflection could see the real benefits of the Project. 5. MIME s agreement to also focus on pro-poor issues reflects the fact that it bought into the stakeholder engagement processes from the outset of the Project. Initially there was some reluctance from the provinces to a greater poverty focus because their emphasis was on the physical infrastructure components. However, as the PSGA is able to document

6 having a female director of the Stung Treng WSA has greatly enhanced the poverty focus of the project but in addition the gender focus as evidenced by the interested displayed by the Stung Treng Department of Women s Affairs. It has been assumed that the framework exists for even greater stakeholder engagement leading up to the implementation and during actual project implementation. 6. The gender analysis embedded in the overall PSGA has demonstrated that women generally have a more systemic appreciation of the linkage between water and sanitation issues. Women simply do not just also need to use clean water but also have to manage sanitation-related household-based issues such as when household members fall ill due to lack of adequate sanitation facilities. Women and girls are also more aware of lack of privacy issues and their inability to ensure in some instances higher personal levels of bodily hygiene. The impacts reach beyond the household to public spaces such as markets and schools. Markets need to be clean to ensure food safety and girls (and their teachers) need both toilets with water in schools. The gender analysis does not argue men are insensitive to such issues but women are very sensitive. An argument is also made for women to be offered project-related waged employment and as an integral component of the gender empowerment processes to be actively involved in the monitoring and evaluation of the Project. 7. There are a small number of ethnic minority groups in the Project towns and these groups need to be considered as they are also entitled to receive benefits that will accrue to other Cambodians as a result of this Project. They should be entitled to free household connections (or if subsidized connections become the reality also entitled based on income not ethnicity), if land is to be acquired (unlikely according to existing feasibility studies) the same level of compensation, and the right to participate in any monitoring and evaluation processes. It is not argued that a standalone IPP is required. 8. Safeguards that are applied to ethnic minorities also need to be applied to all other households to ensure, for instance, that if water supply connections are provided free-ofcharge by MIME that local WSA staff or contractors do not try and collect payments, albeit informally from households. The PSGA highlights the need to ensure that households continue to be well-informed about the Project and this is embedded in the Consultation and Participation Plan. The FGDs facilitated in each of the four project cities featured in the PSGA have enabled greater levels of information dissemination. Other mitigation measures associated with HIV/AIDS and other STIs and occupational health and safety issues that should be incorporated into the EMP have been highlighted in the PSGA. 9. In conclusion the Project provides significant benefits to women and men, poor and non-poor because access to clean water is essential for all human beings but if it were possible to more systemically link water and sanitation the Project would offer even greater benefits. Although it is recognized that institutional obstacles exist in Cambodia to this being a reality for this specific Project.

7 1. Introduction 1. The Poverty, Social and Gender Analysis (PSGA) provides an assessment of the social, poverty and gender equity status of the target beneficiaries (end water users) in the nine Project towns that will be served by the Cambodia Urban Water Supply Project (CUWSP); and the extent to which these factors were being perpetuated or reinforced by the lack of reliable potable water supply. It will also assess the positive and negative impacts of the Project on the target beneficiaries and the wider community in the Project towns. Based on this assessment, the PSGA will identify and prioritise the key issues and propose corresponding interventions to mitigate the Project s social risks and ensure the target beneficiaries inclusion and fair share of the Project benefits. Specifically in relation to gender issues it will be assessed to what extent both practical and strategic gender needs are met and whether intra-household dynamics and inter-household relations will be impacted upon as a result of this Project. From the outset a caveat should be stated that standalone projects cannot be expected to radically transform the nature of poverty, social relations or gender empowerment but rather contribute to incremental changes of a positive developmental nature. 2. The PSGA is organized by: (i) an overview of ADB s PSGA policy and guidelines; project background and links with the national poverty reduction and inclusive growth strategies; project outputs and social, poverty and gender impacts; (iii) the nine subproject towns socio-economic profile; (iv) an analysis of social development issues; (v) an analysis of poverty-related issues; (vi) an analysis of gender issues; (vii) a brief analysis of ethnic minorities that will be impacted upon by the Project; and (x) conclude with a summary of key issues. Data for the PSGA has been derived from a range of different sources including (i) a review of secondary sources both official governmental and a range of credible but nonofficial sources; (ii) the SES undertaken by the PPTA in June 2013; (iii) FGD facilitated by the PPTA during May and June 2013; (iv) visits to the sub-project towns and cities, especially Stung Treng, Siem Reap, Kampong Cham and Svay Rieng by PPTA Social Development Specialists; and (v) a special PPTA mission in September 2014 by a separate International Social and Gender Specialist to address the gaps in the PSGA. The SES has been organized so that baseline socio-economic data will be available for monitoring and evaluating the impact of the Project both implementation and post-implementation. 3. To ensure that poverty, social and gender issues would be incorporated into the PSGA the PPTA Social Development Specialists developed a Stakeholder Engagement Process and Impact on the TA Project that required that under-served and unserved households be surveyed and afforded the opportunity to participate in FGD. It was also stressed that poorer households, women, and where relevant ethnic minority households should both be surveyed and afforded the opportunity to participate in FGD. Moreover, to ensure that MIH at the local level understood the concerns of existing and potential customers FGD involving local officials and customers from different socio-economic backgrounds were facilitated. 1

8 2. ADB PSGA Policy and Guidelines 4. The PSGA is a policy requirement of ADB (A Handbook on Poverty and Social Analysis, 2012) and is usually carried out in the conceptual and design stages of ADB funded projects. 5. The purpose of assessing the poverty impact and social dimensions of project preparation is to provide information on the: (i) links of the project to the national poverty reduction strategy and the Country Partnership Strategy (CPS); (ii) the poverty targeting classification and its justification; (iii) key poverty and social issues (including gender) of the potential beneficiaries including the impact channels and expected systematic changes; (iv) opportunities and constraints for client/beneficiaries, particularly the poor and marginalised groups to benefit from the project activities and outputs; and (v) prepare design measures to achieve inclusive development outcomes during implementation. The preparation of the PSA should also address issues on gender, stakeholder participation, social safeguards and other social risks. 6. It is a policy requirement of ADB that all investment projects should seek to be socially inclusive, equitable and sustainable (ADB Handbook on Poverty and Social Analysis, 2012). These three objectives can or should be achieved in an urban water supply project by being: (i) equitable in the form of geographic location in poor and/or vulnerable hot spot areas (e.g. development of new water sources); (ii) inclusive in terms of access to water supply infrastructure (e.g. tariff structures and connection subsidies); and (iii) sustainable (e.g. local operation and management of facilities and inclusion of stakeholders in urban water sector development strategy and planning processes). 7. The scale and extent to which these three objectives could be achieved depends on the nature, technical design and purpose of the investment project, its scope and level of funding and the socio-economic situation and needs of the affected peoples (APs), indigenous peoples (IPs), source communities and beneficiaries (end users). 8. The findings of this PSGA are reflected in the design and monitoring framework (DMF), summary poverty reduction strategy (SPRSS), and stakeholder communication strategy. Due to the nature and scope of the investment project, an assessment of opportunities for stakeholder participation and gender mainstreaming were deemed limited. Hence, preparation of a participation plan and gender action plan were not warranted. 3. Project Background 9. ADB 2020 lends support to the Cambodian Government s Rectangular Strategy on Growth, Employment, Equity, and Efficiency, Phase III, which provides the overall framework for the development policies to guide long-term sustainable development; and the National Socioeconomic Development Plan (NSDP) which further details the Rectangular Strategy and gives priority to the development of physical infrastructure including urban water supply. In this connection, the Project will expand and improve the capacity and quality of the water supply systems and provide new connections in nine subproject towns and meet the needs of women and poor households in these areas. The Project supports the ADB s water and sanitation assessment, strategy and roadmap (SASR), country partnership strategy (CPS) and the ADB water operational plan to improve the efficiency of water services. It will also progress the Cambodian Government s efforts towards its MDG goal to improve water supply access for 80% of the urban population. 10. Investment in the water sector in Cambodia in the last 20 years was centered primarily on Phnom Penh and neglected the other towns and urban areas. Investment in 2

9 water supply in the provinces has been slow and the Provincial Public Water Works (PWWs) across Cambodia have suffered. 11. Not all the investments prioritized by MIH will be directly socially inclusive or equitable because they involve upgrading of existing physical water supply and sanitation infrastructure and are not directly targeted at individual household end-users. This review will focus on both water and sanitation issues although it needs to be noted that only a strategy has been prepared for urban sanitation because MIH is not responsible for urban sanitation. However, it is prepared to work with entities in Cambodia, notably the Ministry of Public Works and Transport and local city governments, to ensure that not only improvements to the water supply system but also sanitation improvements in urban areas benefit the residents of the subproject towns and cities. 12. The main report contains specific details of proposed facility improvements but in the context of this specific project there are two subprojects Stung Treng and Siem Reap that warrant more attention because they are not simply facility improvements but have been designed to ensure households currently not connected to the existing water supply systems in both cities will have the opportunity to be connected. In Stung Treng, which is the largest of all subprojects (US$13,473,384) and in excess of half the proposed investment project, upwards of 6,600 households will be served and in Siem Reap the second largest of all subprojects (US$7,442,400) upwards of 8,000 households will be served by the investment project. In the other subproject towns and cities Kampong Cham, Kampot, Kampong Thom, Sihanoukville, Pursat, Stoung and Svay Rieng there is either currently not the capacity to produce more water using existing facilities or as the SES has demonstrated hitherto unserved households have stated they can find other sources of water. 13. Nevertheless, the investments facilitate an enabling environment whereby synergies with existing investments or planned investments targeted at individual household end-users and other end-users (e.g., hospitals and schools and small and medium enterprises) will or should benefit from the investment. Moreover, under MIH tutelage the Phnom Penh Water Supply Authority (PPWSA) has institutionalized a program to subsidize domestic water connections to low-income households, known as the Water Supply for Poor Program, for which it has received widespread international acclaim. This is consistent with Cambodia s 2003 National Policy on Water Supply and Sanitation (specifically clean water supply for provinces, cities and towns in Cambodia). In Stung Treng and Siem Reap MIH has agreed that households will not be required to pay for household water supply connections but this report also identifies criteria based on a range of poverty and social indicators that would be utilized of households were required to pay for these connections. 14. Hence stakeholders in this Project will include all existing and potential end-users, including especially poorer and more vulnerable groups such as female-headed households and other socially and economically disadvantaged households such as households with higher dependency ratios or households with economically active members whose income generation potential is limited by physical or other impediments. Although as argued above the beneficiaries of this specific Project will be restricted to Stung Treng and Siem Reap. 15. It is a requirement of the ADB that the investments for this Project be socially inclusive, equitable and sustainable. The ADB argues these three objectives can or should be achieved in a project of this nature by (a) equitable in the form of geographic location in poor and/or vulnerable hot spot areas (development of new water sources); (b) inclusive can be with respect to terms of access to water supply infrastructure (tariff structures and connection subsidies); and, (c) sustainable (local O&M management of facilities and the inclusion of stakeholders in urban water sector development strategy/planning processes). It can be argued that not all local MIH participants in the Inception Workshop understood these social development issues in a very comprehensive manner and more work with MIH on 3

10 these issues is important although it is an iterative process and MIH s understanding will not be enhanced overnight. However, by the time of the Interim Workshop local MIH participants demonstrated a better understanding of these social development issues. 10. A stakeholder analysis specific to a project of this nature identified key stakeholder groups, their interest with respect to proposed project interventions, and understand how they perceive the problems and issues which the project design proposes to address. It can be noted that these nine towns have some socio-economic characteristics in common (all have some female-headed households and other vulnerable households) but towns (cities) such as Siem Reap, Kampong Cham and Kampot are economically more advanced and socially dynamic than towns such as Kampong Thom, Stung Treng, Stoung, Pursat and Svay Rieng. 11. A Stakeholder Communication Strategy for the Project has been developed that focuses on the key messages to be disseminated to each key stakeholder group to ensure they are well informed about the aspects of the project that are of interest to them and that they are effectively engaged and will meaningfully contribute to the Project. It is being conducted in accordance with the ADB s 2011 Public Communications Policy and 1998 Gender and Development Policy. 12. At the time of the Inception Workshop it was planned that this strategy would be further refined when the environmental and social safeguard specialists together with the social development specialists facilitate stakeholder consultations in each of the towns and cities considered priorities for this Project and for which full Feasibility Assessment Reports will be prepared additionally utilizing the ADB s 2009 SPS. While it was understood there would be some different issues that the safeguard specialists need to raise with stakeholders such activities would take place in the context of jointly planned and facilitated consultations. The Environmental Specialist opted for larger-scale public meetings although some smaller meetings, notably workshops, were also facilitated so that stakeholder s voices could be more effectively heard. The Resettlement Specialist explained ADB policy in relation to land acquisition and involuntary resettlement that will not only be targeted at Affected Peoples but also other stakeholders at the sub-project level. The Social Development Specialist has adopted a variety of tools and techniques as explained in the PP Plan. However, the extant issue for all specialists is the degree of consultation and participation and the aim should not simply be to share information. 13. There were inadequate resources to undertake such consultations with disparate groups of stakeholders in the towns where only limited Feasibility Assessment Reports will be prepared by the TA Team. Nevertheless the FGDs that were facilitated for the four subprojects for which FARs have been designed can serve as exemplars for other modes of financing in the future including the proposed ADB sector loan. 4. Basic Water Supply and Sanitation Facilities 14. To enable an overview of water supply and sanitation facilities in at least the four subproject towns, Cambodia has a Commune Database that contains information on water supply and sanitation facilities. It was initially prepared in 2008 but and the latest data provided below was compiled in 2011 but presented as 2012 data. However, it is very useful source of information because most database specialists in Cambodia with an understanding of official databases argue this database is generally more reliable than other databases that exist and it is the database that typically providers of ODA feel comfortable with using to inform their own analyses. Table 1 contains information on sources of potable water from each of the four subproject towns: 4

11 Name of City Table 1: Sources of Household Potable Water Existing WSA Pump Wells Open Wells Dug Ponds Rainwater Storage Natural Sources (river, lake, pond) Stung Treng Siem Reap nil Kampong Cham nil Svay Rieng nil Source: Commune Databases From the above table it can be seen that only Kampong Cham has a quite high coverage and Svay Rieng and Siem Reap a very low coverage. The project will expand the network system in Stung Treng and Siem Reap but not Svay Rieng. 16. Table 2 contains uses the Commune Database to quantify drinking water sources during the dry season, principal means utilized for rendering water potable, and access to water sources: Table 2: Dry Season Water Sources, Means of Purification and Access to Water Sources Name of City Water from Clean Sources Water from Unclean Sources Water filtered before Drinking Water boiled before Drinking Domestic water source or within 150 meters Water source in excess of 150 meters from home Stung Treng Siem Reap Kampong Cham Svay Rieng Source: Commune Databases What the commune database does not provide is gender disaggregated data especially in relation to whom in the household collects water from distances greater than 150 meters but the SES provides such data based on interviews with households. This is reflected in the following table: Table 3: Gender of Household Members Collecting Water Name of City Male Female Male and Female All Household Members Stung Treng Nil Siem Reap Nil Kampong Cham Svay Rieng Nil Source: Socioeconomic Survey, PPTA, June and July The data provided by the SES is quite difficult to accept based on empirical observation by the PPTA Social Development Specialists and also from other studies as to who is primarily responsible for collecting water in Cambodia although admittedly most of these studies have been conducted in rural Cambodia. It is correct that significant numbers of households collect water via the use of a motorcycle (households not owning at least one motorcycle in urban Cambodia are generally considered to be poor) and it is largely males that ride these motorcycles. However, it has to be remembered that the SES data is derived from interviews with household heads and males being interviewed when they understand the nature and purpose of the question are likely to respond that they are largely 5

12 responsible. Cambodian men largely accept that it is an onerous activity to collect water on a daily basis and seek to avoid giving outsiders the impression that men are wanton in this respect. 19. The SES also gathered data on household-based sanitation facilities even though the PGSA focuses on a broader concept of sanitation than the SES it is useful to highlight what data is of relevance to the PGSA in Table 4. Name of City Table 4: Household Sanitation Facilities Household Latrine of All Types No Household Latrine and Typical Non-Use Septic Tank for HH with Latrines Stung Treng Siem Reap Kampong Cham Svay Rieng Source: Commune Database, 2012 and Socioeconomic Survey, PPTA, June and July Of the households with latrines some use pit latrines, which while better than nothing, are generally not that satisfactory and some households also use the latrines belonging to their neighbors that in some instances are likely to be close or distant kindred. However, households that do not use latrines (and over one-third of households in Stung Treng, Siem Reap and Svay Rieng) typically household members defecate in wooded areas in close proximity to the house or in the garden. 21. While there is no reliable health data intuitively people are healthier in Kampong Cham than the other three cities as a result of these household sanitation facilities and it is generally accepted that households with access to a latrine (with the exception of pit latrines) are generally better off than other households and less likely to be living in poverty. Hence in the context of poverty indicators it is not simply whether a household has access to potable drinking water but also a household latrine. 5. Sources of Livelihood 22. The SES data enables a comparison of sources of livelihoods for the four cities and is reflected in Table 5. 6

13 Table 5: Sources of Livelihood Stung Treng Siem Reap Kampong Cham Svay Rieng High Income Medium Income HH Low Income High Income Medium Income HH Low Income High Income Medium Income HH Low Income High Income Medium Income HH Low Income HH HH HH HH HH HH HH HH Wages and Salaries Pensions and Allowances Income from Cash Crops Sale of Livestock and Related Products Sale of Fish Catch Provision of Transport Services Provision of Other Services Sale of Processed Goods Small and Medium Business Enterprises Inward Remittances Other Source: Socioeconomic Survey, PPTA, June and July

14 23. The table illustrates that both Stung Treng and Svay Rieng are more rural in nature in that agricultural-related livelihoods are quite important especially for high income households but for less well-off households that are not living in poverty (the medium income households that are discussed in more detail when the analysis shifts to poverty in the project) they generally have more income-generation opportunities than low income households. This is hardly surprising because households with diversified livelihoods are less likely to be living in poverty or subject to the vulnerabilities of relying on one or two sources of livelihood activity. 6. Quality of Built Environment, Use of Appliances and Motorized Transport 24. The four cities vary in the quality of the built environment with Siem Reap standing out because it is an international tourist destination with a very high quality built environment but very few of the households that will benefit from this project reside in such salubrious environments. However, to develop a more sophisticated profile of households the PSGA now briefly focuses on the built environment, what appliances are being used, and access to motorized transport. This profile is represented in Table 6. Name of City House Constructed with Permanent Building Materials Table 6: Physical Quality of Life Indicators Adequate Household Furniture (tables, chairs, lounge suite, beds and storage space) Mobile Phone Used on a Regular Basis Electricity supplied at least periodically each day Motorized Transport (motor-cycle, car or truck or 4WD or 2WD tractor) Stung Treng Siem Reap Kampong Cham Svay Rieng Source: Extracted from Socioeconomic Survey, PPTA, June and July It can be noted here that even though Stung Treng has a greater incidence of poverty than for instance Svay Rieng because it is located in that region of Cambodia where until very recently even poor householders could build houses with high quality timber they could freely extract from forested areas this option has not been available for a long time in the other three subproject cities. 26. The SES does not enable this PSGA to argue that householders use mobile phones for social media purposes although during ad hoc discussions with some younger householders prior to the recent Cambodian elections it was quite clear younger-urban Cambodians in these four towns use mobile phones for such purposes. However, mobile phones are also used for keeping in touch with household members that might be working abroad and to keep abreast with current market conditions. 27. Connections to electricity are a function of the fact that connections to the electricity grid vary from city to city. Siem Reap is connected to a 66kV TL from Thailand while Svay Rieng are connected to 220kV TL from Vietnam. Stung Treng by way of contrast relies on local connections. 28. Motorized transport when all forms are aggregated indicate relatively low ownership, especially in the absence of reliable public transport but if only ownership of motorcycles is considered 66.3% of households in Stung Treng own at least one motorcycle, 76.8% in Siem Reap, 78.9% in Kampong Cham and 74.7% in Svay Rieng. The small numbers that own 8

15 cars (about 12%) in each of the subproject cities are generally from higher-income households. 7. Education and Literacy 29. Basic literacy rates (capacity to read and write basic Khmer) for females varies from a low of 57.9% in Stung Treng to 67.3% in Siem Reap, 72.6% in Svay Rieng and 74.4% in Kampong Cham. The total adult literacy rate varies from a low of 76.8% in Stung Treng, to 77.8% in Siem Reap, 85.2% in Svay Rieng and 86.3% in Kampong Cham. All these literacy statistics indicate literacy levels below UNICEF s 2008 estimate that 90.4% of Cambodia s urban population was literate although perhaps this estimate is conflated because Phnom Penh (the primate city in Cambodia with a population in excess of 1.75 million) is included in the overall estimates. However, as most young people have attended primary and lower secondary school if under the age of 25 and over 12 irrespective of gender they are literate in Khmer. 30. The SES provides data on the highest educational level of adult household members that were surveyed in each of the four cities. Table 7 provides comparative data with female educational level in brackets: Name of City Table 7: Highest Educational Level of Household Members No Formal Schooling Stung Treng 23.2 (36.5) Siem Reap 17.0 (22.3) Kampong Cham 14.7 (19.2) Svay Rieng 08.4 (16.2) Completed Primary School 55.8 (54.3) 38.0 ( (48.1) 48.4 (54.9) Completed Lower Secondary Schooling 16.8 (08.2) 22.0 (19.5) 37.9 (25.6) 25.2 (18.1) Source: Socioeconomic Survey, PPTA, June and July 2013 Studied to Matriculation Level 04.2 (01.0) 03.0 (02.0) 10.5 (05.0) 15.7 (10.0) Post Secondary Certificate, Diploma or Degree Nil (Nil) 02.9 (01.2) 04.2 (02.1) 02.1 (00.8) 31. It can be seen from the above table that males are more likely to (a) attend school; (b) stay at school to complete matriculation; and, (c) participate in higher education. Gender inequality is clearly manifested in educational participation rates (not necessarily at the primary school level) but at the secondary and post-secondary level. There are also quite high non-participation rates but it has to be remembered during the Khmer Rouge period schools were closed and in the immediate post Khmer Rouge period many people of school age were either denied schooling simply because there were neither the teachers or the classrooms or were required to work in rural areas to ensure a modicum of food security after the disastrous Khmer Rouge period where in excess of one million Cambodians died from starvation. 8. Social Development Issues 32. The TOR states that a Public Perception Survey to identify public problems and development priorities will be undertaken. Initially this was thought unrealistic because of the narrative used in the original TOR but after discussions with the ADB the focus will be on affordability and willingness to pay dimensions (as pointed out above MIH together with UNHABITAT has provided some useful data). The FGD facilitated and reported on in this 9

16 report and as a separate appendix is the empirical basis of this Survey, noting that qualitative rather than quantitative approaches have been utilized. 33. The key issue was how much are end-users, especially poorer and more vulnerable consumers, able and willing to pay for such improvements. It is here that pro-poor considerations such as free household connections for water supply and an incremental approach to the construction of supply tariffs have been adequately analyzed by the PPTA and the conclusion is that where possible and practicable MIH is going to provide 100% subsidised household connections to all poor households and female headed households with high dependency ratios. The ADB s 2004 Enhanced Poverty Reduction Strategy has served as the overall guiding approach and methodological approaches consistent with the 2012 Handbook on Poverty and Social Analysis will be utilized. 34. However, the emphasis has needed to be on a demand-driven rather than a supplyside approach to such pro-poor approaches. Such issues were reinforced by the ADB in its comments on the Inception Report. Qualitative data to support this analysis has been derived from the SES that was undertaken in June prior to Cambodia s 2013 elections while qualitative data was derived from the range of methods embodied in the FGDs and Key Informant Interviews. 9. Poverty Related Issues 35. Income-related poverty data in Cambodia like most official statistical data is not wholly adequate and certainly not disaggregated sufficiently for a project of this nature. According to the National Poverty Line Cambodia s poverty in 2007 was 30.1% and according to the international poverty line (PPP of US$1.25) in 2008, 22.8% of Cambodia s population lived on less than US$1.25 per day per capita. If the Project utilizes the latter indicator the typical urban household of 5.2 persons would require (in PPP terms) US$6.5 per day, US$195 per 30 day calendar month or US$2,340 per annum. World Bank estimates for 2007 and 2009 (latest data available in Poverty and Equity Databank and PovcalNet) show the poverty headcount at US$1.25 (PPP) in 2007 was 22.8% and 18.6% in The same data for US$2 (PPP) was 60.1% and 49.5%, US$2.50 (PPP) was 71.3% and 64.5%; US$4 (PPP) 87.3% and 86.4%; and, US$5 (PPP) 91.7% and 91.8% respectively. Based on the SES, Table 8 captures this data for the four subproject urban areas: Table 8 Households by Per Capita, Per Day Income Level (PPP) Under US$1.25 Per Capita, Per Day Under US$2.00 Per Capita, Per Day Under US$2.50 Per Capita, Per Day Under US$4.00 Per Capita, Per Day Under US$5.00 Per Capita, Per Day Over US$5.00 Per Capita, Per Day Stung Treng Siem Reap Kampong Cham Svay Rieng Source: Socio-Economic Survey, PPTA, July Poverty related inequality in Cambodia as reflected in the GINI index was 40.5 in 2008 and 39.4 in The richest 20% of the population possessed 46.8% of wealth in 2008 and 44.4% in 2010 and poorest 20% possessed 8% in 2008 and 7.9% of wealth in This decline in wealth of the poorest 20% is similar to Vietnam and Lao PDR. 37. Of course the terrain in which inequality has been growing in Cambodia is more complex than can be argued in this PSGA because there are a whole range of issues some of which are related to poor governance and very limited transparency and others to the 10

17 specific nature of Cambodia s political economy (for instance economic land concessions that have resulted in the dispossession of poorer, less well-connected households, a garment assembly industry that overshadows most other forms of non-agricultural based employment and an over-reliance on ODA that is not necessarily benefiting those groups it is intended for) that would need to be analyzed. The underlying reality is and one that is typical of most developing economies is that some towns and cities fare better than others and generally speaking all towns and cities benefit to a greater extent than the rural hinterland. And of course in any urban context there are spatial and infrastructural inequalities as the existing state of the water supply systems indicate. 38. However, there is a commune data base prepared by the GOC that is of considerable use in this analysis of urban poverty in Cambodia. Below is a table with 2012 poverty estimates for each of the subproject provinces (and Stoung which is a district in Kampong Thom). This analysis highlights this official data and then compares it with the data gleaned from the SES to provide a better account of quantifiable indices of poverty. Name of Province Table 9 Poverty Data by Subproject Province Provincial Poverty Rate 2012 Urban Poverty Rate 2012 Lowest Urban Poverty Rate 2012 Highest Urban Poverty Rate 2012 Stung Treng Siem Reap Svay Rieng Kampong Cham Kampong Thom Pursat Kampot Sihanoukville Stoung (KTH) Xxx Source: Kingdom of Cambodia (2012), Poverty Reduction Based on Commune Database 39. The highest urban poverty rate is in Stung Treng City/Town and the Project has demonstrated its capacity to target the poorest of the subprojects. Siem Reap is only the fourth poorest of subproject cities but its poorest sangkat (Chong Kneas) is the poorest sangkat in Cambodia according to GOC data. Households in both the poorest sangkat of Stung Treng City (Sammakei) and Siem Reap City will be offered the opportunity to connect free of charge to the extended water supply network. 39. The SES undertaken for the PPTA does not exactly mirror the data provided either by the GOC or WB estimates but it is grounded in updated empirical data and household income and expenditure for high, medium and low income households in each of the four subproject cities that are currently outside the serviced area is provided in Table 10. Table 10: Average Household Income and Expenditure INCOME EXPENDITURE HIGH AVERAGE LOW HIGH AVERAGE LOW Stung Treng 5,380 3,282 1,152 3,294 2, Siem Reap 12,000 5,064 1,825 5,988 3,125 1,254 Kampong 7,780 3,907 1,903 5,883 3,096 1,707 Cham Svay Rieng 16,501 7,409 2,170 4,617 2,866 1,892 Source: Socio-Economic Survey, PPTA, June The SES corroborates other databases that Stung Treng has the highest incidence of urban poverty and the lowest household incomes and expenditures in all three categories. 11

18 However, there are some necessary explanations that need to be made for the other three cities to render the analysis more cogent. 41. Svay Rieng City has a higher poverty incidence than Kampong Cham but because of its close proximity to Vietnam and ability to leverage cross-border links directly to Ho Chi Minh City average household incomes are generally way in excess of Kampong Cham. However, Kampong Cham has a lower urban poverty rate because there are more incomegeneration opportunities for low income households than in Svay Rieng. Siem Reap City has a considerably higher urban poverty rate than Kampong Cham but high and average income households are able to benefit from tourism in Siem Reap. Last year in excess of 2 million foreign tourists visited Siem Reap (home of the famed Angkor temple complex). Nevertheless, poorer households in Siem Reap City without the necessary requisite skills (ability to provide goods and services to tourists) and experiencing a diminishing community resource base by way of declining fish stocks do not fare very well. Yet all households irrespective of income according to the SES earn more than they spend. 42. Using the SES data it is also possible to estimate the percentage of households with per capita incomes of less than US$2.50 per capita per day (bare PPP minimum to be not living in poverty in urban Cambodia) and the percentage of households with per capita incomes in excess of US$2.50 per capita per day as follows: Stung Treng (65.2% below US$2.50); Siem Reap (52.1% below US$2.50), Kampong Cham (32.5% below US$2.50) and Svay Rieng (37.2% below US$2.50). Unfortunately the sample size is not large enough to accept the data as being adequately robust. Nevertheless, it does suggest that even in urban Cambodia there are a significant percentage of the urban population that while not poor by either international poverty levels at the lowest level or indeed the national poverty line are not especially well-off. This observation belies the everyday manifestations of conspicuous consumption (relatively expensive luxury motor vehicles, quite salubrious housing, and well-stocked up-market shopping centers) in cities such as Siem Reap and to a lesser extent Kampong Cham. 43. The SES ranked the socioeconomic status of respondents based on the quality of housing, which is actually quite a good indicator. The rankings for each of the four cities are found in Table 11. Table 11: Poor and Non-Poor Ranking Name of City Extreme Poverty Relatively Poor Non-Poor High Income Stung Treng Siem Reap Kampong Cham Svay Rieng Source: Socio-Economic Survey, PPTA, July Explanations for being poor according to the SES are also interesting and should be factored into the analysis because they provide at least a partial link to why improved water and sanitation facilities can lead at least to better health outcomes. Table 12 illustrates these explanations. 12

19 Name of City Food Shortage No Agricultural Land Table 12: Householder s Explanations for Being Poor Adults with Poor Health No Livestock Poor Housing or Lack of Housing Insufficient Financial Resources Lack of Access to Productive Investments Multiple (high dependency, cost of living) Stung Treng Siem Reap Xx Kampong Cham Svay Rieng Source: Socio-Economic Survey, PPTA, July

20 45. Such explanations are not that surprising and are broadly consistent with explanations that were provided during the 2001 Participatory Poverty Assessment in Cambodia financed by the ADB. In the context of this specific project the key explanations lie are linked to adults with poor health; poor housing or lack of housing and insufficient financial resources. 46. The SES data for non-serviced areas however shows that in Stung Treng over the last eleven days before the actual survey three households had a member that had to be treated for quite serious diarrhea, one each for more serious amoebic dysentery, typhoid fever, and scabies, three households had at least one member that had to be treated for gastroenteritis, and two households at least one member that had to be treated for dengue fever. Based on the SES some 22% of households required treatment for one ailment or another linked to problematic water supply and sanitation. In Siem Reap members of three households over the corresponding period had to be treated for quite serious diarrhea, which of course is a reflection again of problematic access to water and poor sanitation. However, at the time of the SES this represented only 3.2% of households. In Kampong Cham the SES found that only 6% of households had been affected by a waterborne disease over the past 12 months prior to the SES, which appears quite low given that an earlier epidemiological study undertaken by the Ministry of Health indicated that in excess of 15% of households in Kampong Cham required medical treatment for waterborne diseases over the preceding 12 months. In Svay Rieng in the eleven days leading up to the SES members from three households were treated for diarrhea, from two households for typhoid fever and one household for gastroenteritis. This constitutes 12% of all households surveyed. 47. The SES argues that in many instances there is no clear nexus between reported illnesses and poor quality water but any public health analysis is generally able to demonstrate there is a nexus between poor water quality, unsound hygiene practices and lack of sanitation facilities. This is why any project that addresses improved access to water also needs to link the project with improved access to sanitation facilities. 48. While it is quite clear that urban households throughout Cambodia are less likely to be poor than rural households but the latter often have a safety net through close and distant kindred that many urban households lack. However, there is a difference between poorer urban households that retain organic links with their rural kindred and who might benefit from relationships of reciprocity (e.g. un-milled rice provided for urban household consumption in exchange for school-aged children residing with urban relatives to attend high school) and those households who have either severed such links or lacked them in the first instance. There is also an increasing incidence of Cambodians working in either Thailand (in excess of 500,000 documented workers but perhaps upwards of 1,000,000 on a seasonal basis) and Vietnam (especially from border provinces such as Svay Rieng) that must invariably have some impact on the poverty and social analysis Unfortunately the SES was not able to shed much light on these issues although intuitively they are issues that cannot be ignored. 49. There are other proxies that might be used to develop a more nuanced analysis of poverty in the Project towns. Some of these proxies could include: (i) type of housing construction materials used; (ii) existing state of water and electricity supply and sanitation facilities; (iii) current attendance at high school of female students; (iv) nature of income generation activities; and, (v) ownership of motorized transport. Proxies such as ownership of and use of mobile phones are not very useful because nearly every household has at least one mobile phone. In a similar manner perhaps ownership of a laptop computer or internet connectivity might not be especially relevant although possibly in towns such as Siem Reap, Battambang and Preah Sihanouk even poorer households might use internet cafes to a greater extent than in other towns. The problem is that official databases for the most part do not enable the Project to quantify such possible changes (e.g., the official Commune Databases). 14